As new U.S. tariffs begin to reshape the global auto landscape, Nissan is the latest automaker feeling the heat. In a strategic shift, the company will temporarily scale back production of its top-selling U.S. model—the Rogue SUV by about 13,000 units at its Kyushu plant in southwestern Japan between May and July.
The reduction amounts to over 20% of the 62,000 Rogues sold in the U.S. during the first quarter of this year. While the Kyushu plant will continue operating on its regular two-shift schedule, workers are expected to face reduced hours and occasional production halts throughout the three months.
This manufacturing adjustment underscores Nissan’s heavy reliance on the U.S. market, where vehicles made in Japan and Mexico make up a significant portion of its sales. As Trump’s new tariffs disrupt the supply chain, Nissan is forced to re-evaluate its logistics and operations strategy. “Our approach will be thoughtful and deliberate as we navigate both immediate and long-term effects,” the company said in a statement. It also emphasized its commitment to optimizing efficiency while maintaining sustainability and supporting its workforce.
Interestingly, this decision to cut production in Japan comes shortly after Nissan reversed a plan to reduce output at its U.S. plant in Smyrna, Tennessee. Initially set to cut Rogue production there to one shift, the company opted to maintain two shifts instead—perhaps a sign of confidence in local manufacturing as a way to weather the storm of tariffs.
President Trump added a note of uncertainty when he recently hinted at possibly revisiting the tariff timeline, stating automakers “need a little bit of time.” That ambiguity has left global carmakers scrambling to recalibrate.
The impact of the tariffs isn’t limited to Nissan. Stellantis, parent company of Chrysler, paused production at facilities in Mexico and Canada, causing temporary layoffs for 900 workers across five U.S. plants. Honda has also adjusted course, moving production of its upcoming Civic hybrid from Mexico to Indiana.
For Nissan, the challenges run deeper than tariffs alone. The company had already been planning a 20% global capacity cut as part of a long-term turnaround effort. Its newly appointed CEO Ivan Espinosa is under pressure to breathe life back into the brand—particularly in the U.S., where sales have been slowed by an outdated vehicle lineup and a noticeable gap in hybrid offerings. Financially, the situation has been strained: Nissan downgraded its profit forecast three times in the most recent fiscal year.
